It took them a few years to catch up to Peter, but at least they are there now.

This is very good news. The findings by the federal regulator are like a bomb blowing up in the face of the administration. Those idiots wanted to continue to guarantee loans even after restructuring Fannie and Freddie. Now the cat is out of the bag that the guarantees where the reason for their losses. Of course, Peter was saying that years before the housing bubble popped.

But Thursday's report from the Federal Housing Finance Agency said that Fannie and Freddie's portfolios weren't the major driver behind the companies' losses.

Rather, it was the role the companies played as a guarantor of mortgages that led to most of their losses, the FHFA said. Geithner has also pointed to the weight of souring guaranteed loans as a source for the companies' troubles.